How much should I offer for a property?


In Aberdeen and the surrounding area, just at present, closing dates are something of a rarity. With the current economic background, canny Aberdonians and their equally canny countrymen are being very careful with their money. But what do you offer, if you do find yourself having to consider making an offer for a property at a closing date?

As you probably expect, there is no hard and fast rule, what to do depends on the overall circumstances in which you find yourself. The factors that come into play include – have you sold your house, are you sure of your funding, how many other people are there “after” the house you like, what are the market conditions at present, what have similar properties sold for recently? For all these factors, you should find your solicitor very helpful with information and facts and figures. So, take advice – discuss with your solicitor.

A fairly recent (6 years ago) but dramatic development in this area came with the introduction of Home Reports and the generic mortgage valuation contained therein. Not everyone welcomed the introduction of these, but they are here to stay and you would be very wise to pay attention to what they say. Do read the surveyor’s inspection report, it gives a valuable source of information.

The inclusion of a mortgage valuation has had a dramatic effect on market volatility, even in markets where demand has been strong, where severe price fluctuations, sometimes seen in the past have, almost without exception, been moderated to much more realistic levels. It is very much the case that discussion on what to offer for a property now starts with the baseline of the mortgage valuation.

This starting point applies in almost every situation. Regardless of whether your local market is steady, booming or declining, you will gauge what to offer based on the valuation. You will almost certainly be able, in most cases, to be given, by your solicitor, a general guide as to how much to offer, above, around or below the valuation, depending on the state of your market.

After that you will need to factor in the other matters to arrive at something you hope will give you a great chance, without being silly. It is a teamwork situation – you and your solicitor.

Of course, this is all well and good until you come to the house that you (or your spouse) fall in love with! Then it is just “deil tak the mindmost”…

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